What’s the impact on Australian home owners
The major banks are all offering relief for their borrowers.
Below are the details as of the first of April.
Interest rate offers aren’t included for two reasons. Firstly, they change on a regular basis. Secondly, the purpose of this article is to inform existing home owners on the relief available to them. If you are looking to get a home loan, then contact us here.
Banks are allowing borrowers to pause mortgage repayments on their home loans for up to 6 months. However, be wary, because the the interest is still capitalised during this period. Which means that the interest continues to accrue on the whole amount owing for the 6 months. Ultimately, that means that you’ll end up paying back more interest in the long term, which forces you to increase the repayments you make after the 6 months, or alternatively you can extend the period of the loan. While this is extremely beneficial for those who do not have the means to continue paying off their loan due to loss of income, we recommend that those who can pay, continue to pay so that they can avoid paying more interest in the long term.
If you need to review your home loan during this difficult times, please do not hesitate to contact us. We are here to help. Contact us here.
Below are the options available to Borrowers offered by each bank.
Home loan borrowers can put their repayments on hold for up to six months – the bank says it will “check in with you after three months” if you do so. Interest run up during the period is capitalised.
Home loan customers can defer repayments for up to six months. Interest is capitalised.
Repayments can be paused for up to six months. Interest is capitalised. Payments can also be reduced during the crisis.
A three-month deferral of home loan repayments, with another three months available after review.